(TOKYO) – On Wednesday, SoftBank, a telecommunications company said that its functional profit is expected to fall about 8% this financial year after marking a high profit last year. Explaining the reason, the company said that in consolidation of its few units, it has lost one-time benefits.
However, the Tokyo based company is still drawing gains both from its local mobile phone business and also from its investments that incorporate its capital in the e-commerce giant, Alibaba Group of China.
SoftBank, which is the third largest mobile phone operator of Japan, said that it expects an operating profit of USD 9.85 billion or 1 trillion yen in the year that ends in March 2015. This is slightly below the analysts’ predictions of JPY 1.09 trillion, and is also less than the JPY 1.09 trillion profit it reported for the financial year 2013-14 that ended on March 31. However, the profit reported in the year 2013-14 was slightly more than what was expected (JPY 1.07 trillion). Moreover, this is the first time that this profit has exceeded the net profits of NTT DoCoMo, the biggest mobile carrier of Japan.
Talking about its holdings in Alibaba, which is planning a listing in the US soon, SoftBank said that it added JPY 66.78 billion to its pretax profit. In addition, the company also clarified in the company’s initial public offering that it has no intentions to sell its stake in Alibaba.